Nation at a Glance - Kazakhstan

History

Ethnic Kazakhs, a mix of Turkic and Mongol nomadic tribes who migrated to the region by the 13th century, were rarely united as a single nation. The area was conquered by Russia in the 18th century, and Kazakhstan became a Soviet Republic in 1936. Soviet policies reduced the number of ethnic Kazakhs in the 1930s and enabled non-ethnic Kazakhs to outnumber natives. During the 1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens were encouraged to help cultivate Kazakhstan's northern pastures. This influx of immigrants (mostly Russians, but also some other deported nationalities) further skewed the ethnic mixture. Non-Muslim ethnic minorities departed Kazakhstan in large numbers from the mid-1990s through the mid-2000s and a national program has repatriated about a million ethnic Kazakhs back to Kazakhstan. These trends have allowed Kazakhs to become the titular majority again. This dramatic demographic shift has also undermined the previous religious diversity and made the country more than 70% Muslim. Kazakhstan's economy is larger than those of all the other Central Asian states largely due to the country's vast natural resources. Current issues include: developing a cohesive national identity, expanding the development of the country's vast energy resources and exporting them to world markets, diversifying the economy, enhancing Kazakhstan's economic competitiveness, and strengthening relations with neighboring states and foreign powers.

Location: Central Asia, northwest of China; a small portion west of the Ural (Zhayyq) River in easternmost Europe

Border Countries: China 1,765 km, Kyrgyzstan 1,212 km, Russia 7,644 km, Turkmenistan 413 km, Uzbekistan 2,330 km

Total Area: 2,724,900 sq km Land: 2,699,700 sq km Water: 25,200 sq km

Climate: Continental, cold winters and hot summers, arid and semiarid

Terrain: Vast flat steppe extending from the Volga in the west to the Altai Mountains in the east and from the plains of western Siberia in the north to oases and deserts of Central Asia in the south

Natural resources: Major deposits of petroleum, natural gas, coal, iron ore, manganese, chrome ore, nickel, cobalt, copper, molybdenum, lead, zinc, bauxite, gold, uranium

Land use: Agricultural land: 77.4% arable land 8.9%; permanent crops 0%; permanent pasture 68.5% Forest: 1.2% Other: 21.4% (2011 est.)

Ethnic groups: Kazakh (Qazaq) 63.1%, Russian 23.7%, Uzbek 2.9%, Ukrainian 2.1%, Uighur 1.4%, Tatar 1.3%, German 1.1%, Other 4.4% (2009 est.)

Languages: Kazakh (official, Qazaq) 74% (understand spoken language), Russian (official, used in everyday business, designated the "language of interethnic communication") 94.4% (understand spoken language) (2009 est.)

Religions: Muslim 70.2%, Christian 26.2% (mainly Russian Orthodox), Other 0.2%, Atheist 2.8%, Unspecified 0.5% (2009 est.)

Population: 18,360,353 (July 2016 est.)

Literacy: 99.8%; Male: 99.8%; Female: 99.8% (2015 est.)

Administrative divisions: 14 provinces (oblyslar, singular - oblys) and 2 cities* (qalalar, singular - qala); Almaty (Taldyqorghan), Almaty*, Aqmola (Kokshetau), Aqtobe, Astana*, Atyrau, Batys Qazaqstan [West Kazakhstan] (Oral), Mangghystau (Aqtau), Ongtustik Qazaqstan [South Kazakhstan] (Shymkent), Pavlodar, Qaraghandy, Qostanay, Qyzylorda, Shyghys Qazaqstan [East Kazakhstan] (Oskemen), Soltustik Qazaqstan [North Kazakhstan] (Petropavl), Zhambyl (Taraz)

Economy: Kazakhstan, geographically the largest of the former Soviet republics, excluding Russia, possesses substantial fossil fuel reserves and other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. The government realizes that its economy suffers from an overreliance on oil and extractive industries and has made initial attempts to diversify its economy by targeting sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing for greater development and investment. It also adopted a Subsoil Code in December 2017 with the aim of increasing exploration and investment in the hydrocarbon, and particularly mining, sectors. Kazakhstan's vast hydrocarbon and mineral reserves form the backbone of its economy. A $36.8 billion expansion of Kazakhstan’s premiere Tengiz oil field by Chevron-led Tengizchevroil should be complete in 2022. Meanwhile, the super-giant Kashagan field finally launched production in October 2016 after years of delay and an estimated $55 billion in development costs. Kazakhstan’s total oil production in 2017 climbed 10.5%. Kazakhstan is landlocked and depends on Russia to export its oil to Europe. It also exports oil directly to China. In 2010, Kazakhstan joined Russia and Belarus to establish a Customs Union in an effort to boost foreign investment and improve trade. The Customs Union evolved into a Single Economic Space in 2012 and the Eurasian Economic Union (EAEU) in January 2015. Supported by rising commodity prices, Kazakhstan’s exports to EAEU countries increased 30.2% in 2017. Imports from EAEU countries grew by 24.1%. The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2016 contributed to an economic slowdown in Kazakhstan. In 2014, Kazakhstan devalued its currency, the tenge, and announced a stimulus package to cope with its economic challenges. In the face of further decline in the ruble, oil prices, and the regional economy, Kazakhstan announced in 2015 it would replace its currency band with a floating exchange rate, leading to a sharp fall in the value of the tenge. Since reaching a low of 391 to the dollar in January 2016, the tenge has modestly appreciated, helped by somewhat higher oil prices. While growth slowed to about 1% in both 2015 and 2016, a moderate recovery in oil prices, relatively stable inflation and foreign exchange rates, and the start of production at Kashagan helped push 2017 GDP growth to 4%. Despite some positive institutional and legislative changes in the last several years, investors remain concerned about corruption, bureaucracy, and arbitrary law enforcement, especially at the regional and municipal levels. An additional concern is the condition of the country’s banking sector, which suffers from poor asset quality and a lack of transparency. Investors also question the potentially negative effects on the economy of a contested presidential succession as Kazakhstan’s first president, Nursultan NAZARBAYEV, turned 77 in 2017.

Agriculture - products: Grain (mostly spring wheat and barley), potatoes, vegetables, melons; livestock

Industries: Oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials